Raisio Sign Agreement To Sell Cattle Feed Business Raisioagro
Finnish group Raisio has announced that it has signed an agreement to sell Raisioagro’s cattle feed business to Lantmännen Agro Oy.
The transaction will be worth €34 million and the arrangement will be conducted as a share transaction. The transfer will take place in September 2018, upon approval from the Finnish competition authorities.
Moving Towards Organic Growth
Raisio’s president and CEO Pekka Kuusniemi, said, “The cattle feed business divestment is an important step towards Raisio’s strategy focusing on healthy foods and profitable growth. The proceeds from this clearly profitable deal allow organic growth and acquisitions. Raisioaqua, the fish feed producer, is an innovative forerunner in its sector and a solid part of Raisio that focuses on healthiness and responsibility.”
The divested business includes two production plants in Ylivieska and Kouvola. A total of 76 employees of the cattle feed business will be transferred to Lantmännen Agro as serving employees. However, Raisio announced that a total of 22 employments will be terminated.
The fish feed business and its personnel will continue as a solid part of the Raisio Group.
A Good Fit
In 2017, net sales for Raisio’s cattle feed business totalled €73.8 million, EBIT was €1.9 million and EBITDA €3.7 million. When the transaction is complete, Raisio will continue to deliver grains for feeds to Lantmännen Agro for the time being.
CEO of the Lantmännen Group Per Olof Nyman, said, “The acquisition of Raisio’s cattle feed business will strengthen Lantmännen’s position in the grain value chain in the Baltic Sea area. We already have large holdings in the bread and malting industry plus independent distributors all over Finland through Lantmännen Agro Oy.
"We are pleased to acquire Raisio’s well-established cattle feed business, since its operations fit well with our business and with the Lantmännen vision, making us a more versatile business partner for Finnish farmers.”
Raisio group also announced that Perttu Eerola’s duties as VP of the Raisioagro Division, a Group Management Team member and Raisioagro Ltd’s Managing Director will end on 4 May 2018 on the back of the divestment.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Aidan O'Sullivan. Click subscribe to sign up to ESM: European Supermarket Magazine.